In Short:
BSNL, a government-owned telecom operator, is trying to compete with top telcos like Jio, Airtel, and Vi by launching 4G and 5G services. It lost 18 million subscribers in FY24 but aims to increase revenue by 80% to Rs 35,960 crore by FY28. BSNL has awarded a Rs 132-crore deal to BCG to create a three-year revival plan. It has significantly reduced net losses and plans to increase revenue in the coming years to become a strong player in the Indian telecom market.
BSNL Takes Steps Towards Revival and Competitiveness
Government-owned telecom operator Bharat Sanchar Nigam Limited (BSNL) has started on a path towards growth and competitiveness in the telecom sector. The lack of fourth-generation (4G) services has led to millions of BSNL subscribers shifting to other major telcos like Reliance Jio, Bharti Airtel, and Vodafone Idea.
Loss of Subscribers and Revival Plan
BSNL lost a significant number of subscribers in the fiscal year 2024, with 2.3 million subscribers leaving in March 2024. To address this issue, the government has infused Rs 3.2 lakh crore into BSNL for revival and expansion, including the launch of 4G and 5G services.
This week, BSNL signed a Rs 132-crore consultancy services deal with Boston Consulting Group (BCG), aiming to develop a three-year revival plan. The plan will focus on various verticals such as consumer fixed access, consumer mobility, and enterprise business.
Revenue Targets and Financial Improvement
BSNL has set ambitious revenue targets, aiming to achieve Rs 35,960 crore in revenue by FY28, with an 80% increase from FY24. The company also aims for an EBITDA of Rs 12,110 crore, compared to Rs 1,839 crore in FY24.
Despite challenges, BSNL reported a narrowed net loss of Rs 5,367 crore in FY24, a significant improvement from the previous year. The company’s revenue from operations saw marginal growth to Rs 19,343.6 crore.
Future Prospects and Industry Outlook
With the telecom landscape evolving towards 5G services, BSNL’s focus on 4G and 5G offerings will be crucial for its competitiveness. While major telcos are advancing in the 5G space, BSNL’s strategic moves and revival plan will determine its position as a strong player in the Indian telecom market.
Recent acknowledgments from industry experts indicate a positive turn for BSNL and its potential to emerge as a significant player in the telecom sector.
